Oil minister says the nation ‘gains nothing’ from remaining within the group after disagreements emerge over manufacturing cuts.
Angola says it is going to depart the Group of the Petroleum Exporting International locations (OPEC) over a disagreement relating to manufacturing quotas, a transfer that may carry the group right down to 12 members.
Talking on public tv on Thursday, Diamantino Azevedo, minister for mineral assets, petroleum and gasoline, mentioned Angola, which produces about 1.1 million barrels of oil a day, is leaving OPEC as a result of it was not serving the nation’s pursuits.
“We feel that … Angola currently gains nothing by remaining in the organisation and, in defence of its interests, decided to leave,” Azevedo was quoted as saying in a press release issued by the president’s workplace.
Angola, which first joined OPEC in 2007, has struggled to fulfill manufacturing quotas over the previous a number of years. The nation is becoming a member of others, reminiscent of Qatar and Ecuador, which have left OPEC previously decade.
Questions on potential manufacturing cuts sought by main oil producers reminiscent of Saudi Arabia have been a supply of latest debate inside the group.
With out Angola, OPEC international locations will produce about 27 million barrels of oil per day, about 27 p.c of the worldwide provide.
However whereas Angola was a comparatively small participant in OPEC, the nation’s departure has raised bigger questions on the way forward for the organisation.
Crude costs dropped by greater than 1.5 p.c after the announcement.
“From an oil market supply perspective, the impact is minimal as oil production in Angola was on a downward trend and higher production would first require higher investments,” mentioned Giovanni Staunovo, a commodity analyst with UBS.
“However, prices still fell on concern of the unity of OPEC+ as a group, but there is no indication that more heavyweights within the alliance intend to follow the path of Angola.”
Oil and gasoline make up about 90 p.c of Angola’s exports and are a vital financial lifeline for the nation.
Final month, Azevedo’s workplace protested in opposition to an OPEC determination to scale back its manufacturing quota for 2024, involved that it could harm Angola’s skill to extend its output capability.
OPEC and its allies in OPEC+ have agreed to chop manufacturing to prop up oil costs.
Angola’s manufacturing capability peaked in 2008 at 2 million barrels per day however has dropped since as a result of ageing infrastructure.
